Golden Nugget to split company in half, go public with online operations
The casino company looks to break up the company to capture the public interest in iGaming
The iconic Golden Nugget casino brand will undergo some significant changes that will turn it into a publicly-traded company. Houston-based billionaire Tilman Fertitta, the owner of the casino brand, announced yesterday a new deal he signed with a special purpose acquisition company called Landcadia II. This company is actually sponsored by Fertitta’s entertainment company, which is publicly traded on the NASDAQ, and it will change its name to create a new company revolving around the casino brand.
This business deal basically means that Fertitta is selling the casino to a company also sponsored by him to become a new venture. So, once the deal with Landcadia II is finalized, the company will change its name to Golden Nugget Online Gaming Inc. (GNOG), and it will also trade on NASDAQ. According to the press release, the deal should be completed during the third quarter of this year and make the new company worth around $745 million.
“GNOG is one of the best-positioned companies to capitalize on this massive online gaming opportunity in the US,” co-chairman of Landcadia II and CEO of Jeffries LLC, Rich Handler, said in a statement. “We at Jeffries couldn’t be more thrilled to partner with Tilman and bring this great opportunity to public markets.” America’s gambling industry suffered greatly due to the coronavirus pandemic and, now that things are starting to run again, the demand for casinos seems to be increasing, especially those with online services.
“Golden Nugget is one of the most time-honored brands in the gaming business today,” said Fertitta in a statement. “When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business.”